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Tesco bank branch plan does not threaten brokers

So Tesco is to open bank branches in 30 of its stores.

It intrigues me why everybody seems to think this is a serious threat to mortgage brokers.

While this kind of service will appeal to some borrowers, most regard sourcing mortgages differently from buying cans of beans.

My local Tesco sells clothes but if I’m hunting for a new outfit for a big night out I’m not going to nip along to my local supermarket to pick out that special shirt, no matter how good its offer is.

I don’t think consumers see their mortgage as a commodity they can pick up while doing their shopping.

The type of individual who visits a mortgage broker wants to be sure they are searching the whole of market and getting the best deal possible.

They normally recognise that a mortgage is a huge investment so they want to do their research in an appropriate manner.

Getting car insurance from Tesco is one thing, getting a mortgage from there is a different matter entirely.

The only time brokers should worry is when Tesco starts to offer direct-only deals that we can’t compete with.

Until then, just because a pair of boots is cheaper in a supermarket it doesn’t necessarily mean that’s where you want to buy them from.

Kevin Ford

Sole Broker

By email

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